At the summary judgment stage, the district court found that an employee of Greenwald Neurosurgical, P.C. caused over $100,000 in losses to the P.C., while he was acting in the ordinary course of the P.C.’s business. The district court then issued a judgment to the P.C. for the policy amount of $100,000 pursuant to a Dishonesty Bond issued by Western Surety Company. Western appealed the district court’s determinations that the employee caused the loss while acting in the ordinary course of business and that the P.C. actually suffered the loss. The P.C. cross-appealed the district court’s findings that it was the only entity insured under the bond and argued it was awarded too little by way of attorney’s fees. The Idaho Supreme Court determined: (1) the district court correctly concluded that only the P.C. was an insured and the only entity that could recover under the bond; (2) whether the employee was acting the “ordinary course of [the P.C.’s] business” was a jury question; (3) a genuine issue of fact existed regarding the amount of losses the P.C. sustained; and (4) the district court erred in awarding attorney’s fees to the P.C. The Supreme Court therefore vacated summary judgment, and remanded for further proceedings. View "Greenwald v. Western Surety" on Justia Law

Plaintiffs were all former members of the Fundamentalist Church of Jesus Christ of Latter-Day Saints (“FLDS”), which illegally practiced polygamy. In 2016, plaintiffs filed suit against the FLDS Prophet, Warren Jeffs, and Jeff’s lawyers, the law firm of Snow Christensen & Martineau (“SC&M”) and one of its partners, Rodney Parker, alleging defendants: (1) directly worked with Jeffs to create a legal framework that would shield him from the legal ramifications of child rape, forced labor, extortion, and the causing of emotional distress by separating families; (2) created an illusion of legality to bring about plaintiffs’ submission to these abuses and employed various legal instruments and judicial processes to knowingly facilitate the abuse; (3) held themselves out to be the lawyers of each FLDS member individually, thus creating a duty to them to disclose this illegal scheme; and (4) intentionally misused these attorney-client relationships to enable Jeffs’ dominion and criminal enterprise. Jeffs defaulted, and the district court dismissed every cause of action against the remaining defendants under Fed. R. Civ. P. 12(b)(6). The issue before the Tenth Circuit Court of Appeals stemmed from the district court’s dismissal of all claims against SC&M and Parker (collectively “defendants”). Reviewing the facts in the light most favorable to plaintiffs, the Court affirmed in part and reversed in part. For fifteen plaintiffs who brought legal malpractice and breach of fiduciary duty claims, the Court determined they pled facts sufficient to survive a motion to dismiss: a factual question remained for each of these plaintiffs regarding whether (and how long) equitable tolling applies to their limitations periods, and whether individual implied attorney-client relationships existed. Twelve plaintiffs pled facts sufficient to survive dismissal of their fraudulent and negligent misrepresentation claims, again, there was a factual question regarding when they discovered their claims, thereby starting the running of the statutory period, and whether an implied attorney-client relationship existed. Civil RICO claims were deemed forfeited as inadequately presented in plaintiffs’ opening brief. With respect to TVPRA claims, nine plaintiffs pled facts sufficient to pass muster under the plausibility standard and thus survived dismissal. View "Bistline v. Jeffs" on Justia Law

This case came to the Georgia Supreme Court by way of three certified questions from the United States Court of Appeals for the Eleventh Circuit. As the receiver of the Buckhead Community Bank, the Federal Deposit Insurance Corporation (FDIC) sued nine former directors and officers of the Bank in federal district court, alleging that the former directors and officers were negligent and grossly negligent under Georgia law for their approval of ten commercial real-estate loans. At the conclusion of the trial, the jury found that some of the former directors and officers were negligent in approving four of ten loans at issue, and awarded the FDIC $4,986,993 in damages. The district court entered a final judgment in that amount and held the former directors and officers jointly and severally liable. They timely appealed to the Eleventh Circuit, arguing the district court erred by failing to instruct the jury on apportionment, which, they say, was required by OCGA 51-12-33 because purely pecuniary harms (such as the losses at issue here) were included within “injury to person or property” under Georgia’s apportionment statute. Concluding that these arguments required answers to questions of law that “have not been squarely answered by the Georgia Supreme Court or the Georgia Court of Appeals,” the Eleventh Circuit certified questions of Georgia law to the Georgia Supreme Court. The Georgia Court concluded OCGA 51-12-33 did apply to tort claims for purely pecuniary losses against bank directors and officers, but did not abrogate Georgia’s common-law rule imposing joint and several liability on tortfeasors who act in concert insofar as a claim of concerted action invokes the narrow and traditional common-law doctrine of concerted action based on a legal theory of mutual agency and thus imputed fault. View "Federal Deposit Insurance Corporation v. Loudermilk" on Justia Law

In 2005, Evangelos Dimitrakopoulos retained the law firm of Borrus, Goldin, Foley, Vignuolo, Hyman and Stahl, P.C. ("Borrus firm"), for help with a business dispute with Steven Eleftheriou. Represented by the Borrus firm, Dimitrakopoulos and his wife filed a complaint against Eleftheriou and his wife. For undisclosed reasons, the Borrus firm filed a motion to withdraw as counsel shortly after it was retained. Days later, the Borrus firm filed a complaint against Dimitrakopoulos, alleging that its former client owed it $93,811.95 in fees for legal services and that payment had been demanded and not made. Dimitrakopoulos, acting pro se, filed an answer to the collection complaint but filed no counterclaim or third-party claim. In a proceeding before an arbitrator six months after the collection action was filed, the Dimitrakopouloses and the Eleftherious settled their dispute. In light of the settlement, the arbitrator did not issue an award. Months later, the court in the collection matter granted the Borrus firm’s unopposed motion for a final judgment by default in the amount of $121,947.99 for legal services, interest, attorneys’ fees, and court costs. Dimitrakopoulos did not appeal. A total of sixteen months elapsed between the filing of the Borrus firm’s collection action and the entry of the default judgment in that action. After the resolution of the business dispute between the Dimitrakopouloses and the Eleftherious, the collection action remained pending for an additional ten months. On September 10, 2015, approximately three years after the entry of judgment in the collection action, the Dimitrakopouloses sued the Borrus firm and the principal attorneys who worked on their matter for legal malpractice. Defendants moved to dismiss the complaint based on the "entire controversy" doctrine and the doctrine of waiver. The Dimitrakopouloses argued that the damages claimed in the malpractice action were known to them as of September 6, 2011, the day that they settled their dispute with the Eleftherious. The trial court concluded that the Dimitrakopouloses could have asserted their malpractice claim in the collection matter. An Appellate Division panel affirmed that judgment and stated that under Olds v. Donnelly, 150 N.J. 424 (1997), legal malpractice claims were exempt from the entire controversy doctrine to the extent that they need not be asserted in the underlying action. The New Jersey Supreme Court concluded the collection action at issue in this matter was not an “underlying action” as that term was used in Olds, and that the entire controversy doctrine could bar the claim. The record of this appeal, however, was inadequate for an application of the equitable rules that governed here. The Court therefore reversed the Appellate Division, and remanded the case for further proceedings. View "Dimitrakopoulos v. Borrus, Goldin, Foley, Vignuolo, Hyman and Stahl, P.C." on Justia Law

In a judicial disciplinary proceeding, the Colorado Supreme Court considered the exceptions of now-former Colorado Court of Appeals Judge Laurie Booras to the Colorado Commission on Judicial Discipline’s (the “Commission’s”) recommendation that Judge Booras be removed from office and that she be ordered to pay the costs incurred by the Commission in this matter. The Commission’s recommendation was based on the factual findings and conclusions of law set forth in the December 12, 2018 Report of the Special Masters in this case. That report concluded that Judge Booras had violated Canon 1, Rule 1.2, Canon 3, Rule 3.1, and Canon 3, Rule 3.5 of the Colorado Code of Judicial Conduct by (1) disclosing confidential information belonging to the court of appeals (namely, the vote of a court of appeals division on a case prior to the issuance of the decision in that case) to an intimate, non-spousal partner and (2) using inappropriate racial epithets in communications with that intimate partner, including a racially derogatory reference to a court of appeals colleague. Judge Booras filed exceptions to the Commission’s recommendation, contending that her communications with her then-intimate partner were protected by the First Amendment and that the recommendation that she be removed from office was too severe under the circumstances of this case. In addition, by letter dated January 2, 2019, Judge Booras advised the Chief Justice that she was resigning her position as a Colorado Court of Appeals Judge, effective as of the close of business on January 31, 2019, although no party contended Judge Booras’s resignation rendered this matter moot. Having now considered the record and the briefs of the parties, the Supreme Court concluded the Commission properly found Judge Booras’s communications with her then-intimate partner were not protected by the First Amendment. Furthermore, given Judge Booras’ resignation, which she tendered and which became effective after the Commission made its recommendation, the Court did not decide whether Judge Booras’s removal from office was an appropriate sanction. Rather, the Court concluded the appropriate sanction in this case was acceptance of Judge Booras’s resignation, the imposition of a public censure, and an order requiring Judge Booras to pay the Commission’s costs in this matter. View "In the Matter of Laurie A. Booras" on Justia Law

The DC Circuit denied a petition for review of the FAA's decision to revoke petitioner's pilot certification for knowingly operating an aircraft with narcotics on board. After petitioner's plane crash-landed due to an engine malfunction, a trooper doing a routine inventory of the aircraft's contents discovered three chocolate bars infused with tetrahydrocannabinol (THC, the psychoactive agent in marijuana) in petitioner's briefcase.
The court held that the sanction of revocation of petitioner's pilot certificate was not imposed arbitrarily, capriciously, nor in conflict with the law. The court held that the Board explicitly considered petitioner's mitigating factors and simply determined that they did not warrant a lighter sanction. The Board reasoned that knowingly transporting illegal narcotics on an aircraft, regardless of quantity or purpose, fell within the scope of 14 C.F.R. 91.19 and was grounds for a certificate revocation. Likewise, the fact that the marijuana was purchased in Colorado did not change the fact that marijuana was illegal under federal law and in federal airspace. Finally, the passage of 49 U.S.C. 44710 did not limit the FAA's authority to revoke certificates under 49 U.S.C. 44709. View "Siegel v. Administrator of the FAA" on Justia Law

Courtney had a CT scan performed at CDI’ diagnostic imaging facility. The radiologist, Webster, an independent contractor hired by MSC, missed Courtney’s rectal cancer. Courtney's cancer festered for over a year before being diagnosed, having metastasized to her lungs and liver. CDI claimed that it could not be held liable because CDI did not directly employ Webster. The district court rejected this argument and applied Indiana’s apparent agency precedent, which instructs that a medical provider is liable if a patient reasonably relied on its apparent authority over the wrongdoer. The jury returned a $15 million verdict. The Seventh Circuit affirmed, first explaining that CDI had not registered under Indiana’s Medical Malpractice Act, which limits liability for registered qualified health care providers and requires the presentation of a proposed complaint to a medical review panel before an action is commenced in court. MSC and Walker had registered as qualified health care providers, so the Websters had filed a complaint against them with the Indiana Department of Insurance. Courtney testified that she had no idea about the contractual relationships among MSC, CDI, and Dr. Walker and she was never provided information that the physician who would be interpreting her CT scan was not subject to CDI’s control or supervision. View "Webster v. CDI Indiana, LLC" on Justia Law

The First Circuit affirmed the judgment of the district court determining that Appellant was barred from relitigating his argument that Plaintiffs should be compelled to arbitrate various tort claims, holding that the district court did not err in denying Appellant’s motion to compel arbitration.
At issue in this procedurally complicated case was whether Appellant’s association with a certain law firm required that Plaintiffs’ various tort claims, including their claims of legal malpractice, be submitted to arbitration. After adopting a magistrate judge’s report and recommendation and applying principles of collateral estoppel derived from Rhode Island law, the district court denied Appellant’s motion to compel. The First Circuit affirmed, holding that Appellant waived any claim of error regarding the magistrate judge’s analysis under Rhode Island collateral estoppel law. View "Patton v. Johnson" on Justia Law

Jackson filed a pro se complaint against Kaiser under the California Fair Employment and Housing Act. After unsuccessfully attempting to serve the summons and complaint, Jackson sought counsel. Jackson never properly served Kaiser; Kaiser never appeared in the action. In April 2016, Jackson retained Horowitz to assist her “with regard to” the suit. Horowitz advised Jackson to dismiss her pending lawsuit without prejudice, believing that she could re-file by September 30, 2016. Although they apparently contemplated that Horowitz would prepare a new complaint, Jackson did not retain Horowitz as counsel of record. Jackson filed a Request for Dismissal prepared by Horowitz. On September 9, 2016, Horowitz informed Jackson that his advice had been based on his misunderstanding of the statute of limitations, which had expired on December 29, 2015, the date Jackson had filed her action. Jackson’s claims are now time-barred. Jackson retained Horowitz on a limited scope basis to represent her on an application seeking relief from the dismissal under Code of Civil Procedure 473(b). The court denied that application, stating that Horowitz’s erroneous advice could not serve as the basis for relief because he did not represent Jackson at the time and did not make an appearance in the case until October 2016, and section 473's mandatory relief provision did not apply to voluntary dismissal. The court of appeal affirmed. Although the order was appealable, section 473(b) mandatory relief is unavailable for this type of voluntary dismissal. View "Jackson v. Kaiser Foundation Hospitals" on Justia Law

The Supreme Court made permanent a preliminary writ of prohibition to prevent the circuit court from taking any further action other than ordering Plaintiffs’ legal malpractice action to be transferred from St. Louis City to St. Charles County, holding that the circuit court exceeded its authority in issuing a ruling on Relators’ motion to transfer after the statutory ninety-day period expired.
Plaintiffs filed a legal malpractice action against Relators and alleged venue was proper in St. Louis City. Relators moved to transfer for improper venue, contending that Plaintiffs were first injured in St. Charles County. The circuit court overruled Relators’ motion. Relators filed a writ of prohibition with the Supreme Court seeking to compel the circuit court to transfer the cause to St. Charles County. The Supreme Court issued a preliminary writ of prohibition, ordering the circuit court to take no further action in this matter. The Supreme Court then made permanent the writ, holding that the circuit court lacked authority to do anything other than transfer the cause to St. Charles County because the circuit court’s failure to rule upon Relators’ motion to transfer within the ninety-day period under Mo. Rev. Stat. 508.010.10 resulted in Relators’ motion being deemed granted. View "State ex rel. HeplerBroom, LLC v. Honorable Joan L. Moriarty" on Justia Law